IRS and SC Department of Revenue Collection Acitivty

While it may seem that the IRS and South Carolina Department of Revenue ("SCDOR") are all-powerful, there are restrictions as to the actions they can take to collect a tax debt. Knowing these restrictions is the key to ensuring back taxes do not place an undue burden on any taxpayer.

The guidelines for tax collection differ between the IRS and SCDOR; however, there are several similaries. Both agencies' processes require the taxpayer to provide certain financial information to the collecting agency. This information is often provided on one of various Forms 433. There are many iterations of this form, but, in short, it provides an income statement and balance sheet for either an individual or a business.

Liens and levies are two tools the IRS and SCDOR use to collect the taxes due to them. A lien is similar to a mortgage on a residence. A lien does not take the asset away from the taxpayer, it is simply a way of securing the debt. A levy is the taking of an asset. In order to place a lien on a taxpayer's assets and levy those assets, the IRS and SCDOR must follow certain procedures and give certain notices to the taxpayer. If you have received one of these notices and have questions, please give us a call to help you navigate the collection process to ensure you and the IRS or SCDOR reach a fair agreement as to the collection of taxes due.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. Readers of this website should not act upon the information presented without first seeking professional legal counsel. Please do not send confidential information or information regarding a legal matter before speaking with an attorney and obtaining authorization to send such information. The Nelson Law Firm of Bluffton, LLC. assumes no liability or responsibility for errors or omissions contained on this website. J. Aaron Nelson, Jr. is responsible for the content of this website and may be contacted at the address, telephone number, and email address contained on the Contact page.

IRS CIRCULAR 230 NOTICE: Any federal tax advice contained on any page of this website is not intended or written to be used, and cannot be used, for the purpose of: (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending any transaction or matter addressed on any page of this website.